Closing the accounting period or year

After you post all the journal entries for a period, you must close the accounting period for each General Ledger company or company group.

Before closing a period, ensure that you release all unreleased journal entries and post all released journal entries. This includes journal entries created by Currency Revaluation (GL191), Translation Calculation (GL195), and Report Currency Translation (GL196). General Ledger verifies that no open transactions exist in the period you are closing. In addition, if you have closing control selected for an application, then you must close the application period before you can close the General Ledger accounting period.

Follow these steps to close the account period:

  1. Access Period Closing (GL199).
  2. Close the period. Use these guidelines to specify the field value:
    Closing Option

    • Select Limited Close to indicate that the period can be reopened at a later date for additional posting.

    • Select Final Close to indicate that the period cannot be reopened at a later date.

    • Select Next Year Beg Bal to calculate beginning balances for next year at any time during the current fiscal year. This option only updates balances and does not perform any closing activities.

    Company/Company Group

    You can specify or select the company number or company group you are closing a period for. If you select a company, then leave the Company Group field blank. If you select a Company Group, then leave the company blank.

    Fiscal Year

    You can specify or select the fiscal year you are closing a period in. If you leave this field blank, then the current year becomes the default value.

    Period

    You can specify or select the period you want to close. If you leave this field blank, then the current period becomes the default value.

    Note: You must close periods consecutively. Do not skip a period when closing. There cannot be any unprocessed journal entries for the period you are closing, including any quick posted entries.
    Final Close Last Year

    This field allows users to final close all periods in the last year for a company or company group. If a period in last year is not Limited Closed, then only the periods prior to that period will be Final Closed. If a period is already Final Closed, then the program will move on to the next period. This option does not let you do a backpost.

    Note: If you translate currency using Translation Calculation (GL195), then close the period for the consolidation company concurrently or after you close the companies from which you translate amounts and units, because the journal entry created by GL195 is posted to the current open period in the consolidation company.
  3. If you are using Translation Calculation (GL195), then run GL199 for both the translation (From) company and the consolidation (To) company.

Impact on General Ledger

  • When you run this program to close an accounting period, the program:

    1. Creates automatic reversing journal entries

    2. Labels the period as closed

    3. Increments the current period number by one

    4. Changes processed journal entries to Historical status.

      Note: If you are closing a consolidation company for the last period of the year, then the translation balance sheet entry is not auto-reversed. Instead, GL199 creates a reversing entry for period 1 after it has performed the year-end retained earnings process.

  • Translation balance sheet transactions are reversed in the next period when GL199 is run for the consolidation company.

  • Revaluation journal entries do not automatically reverse. They must be reversed manually, if necessary.

  • If you are using currency ledger and you are performing a year-end close, then undistributed retained earnings will be closed to retained earnings for each transaction currency.